# New Zealand monetary policy and inflation response > Live situation record from CLSTR: https://clstr.news/situations/new-zealand-monetary-policy-and-inflation-response > Updated: 2026-09-05T22:03:42.000Z. Sources: 17. Developments: 2. The Reserve Bank of New Zealand (RBNZ) increased the Official Cash Rate (OCR) from 2.5% to 2.75%. The decision was made to return inflation to the 1% to 3% target band by mid-2027, following annual inflation reaching 4.1% in the June quarter. Economic conditions remain complex. While meat and dairy exports remain strong, high fuel import prices have contributed to a 9% drop in the terms of trade. The construction industry reported its first growth in nine quarters during the June 2026 period, though critics expressed concern that interest rate hikes could worsen the cost-of-living crisis and impact a job market with 5.6% unemployment. Regarding the transmission of monetary policy, RBNZ Assistant Governor Karen Silk noted a lack of parity between mortgage and deposit rates. She attributed the slow rise in deposit rates to “depositor inertia” and high bank liquidity, advising savers to “shop around” for better rates. ## Timeline ### 2026-09-05: Reserve Bank of New Zealand raises Official Cash Rate to 2.75% The Reserve Bank of New Zealand raised the Official Cash Rate to 2.75%. Officials noted that deposit rates are not rising as quickly as mortgage rates, urging savers to shop around for better returns. 2 sources. https://clstr.news/cluster/reserve-bank-of-new-zealand-raises-official-cash-rate-to-275 ### 2026-08-31: New Zealand Reserve Bank raises OCR to 2.75% The Reserve Bank of New Zealand raised the Official Cash Rate to 2.75% to combat 4.1% inflation, despite warnings from unions and retailers about the impact on households and a fragile economic recovery. 16 sources. https://clstr.news/cluster/bank-of-canada-expected-to-hold-interest-rates-at-225 --- Cite as: New Zealand monetary policy and inflation response. CLSTR, https://clstr.news/situations/new-zealand-monetary-policy-and-inflation-response